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afrirado
Level 2

2021 backdoor Roth IRA conversion for 2020 tax year

In Feb  2021, I did a non-deductible contribution from my checking account to a traditional IRA ($6k for 2020) and, on the same day, requested the broker to do a ROTH IRA backdoor conversion on that full amount ($6k). 

 

My question is will this Roth IRA contribution considered for 2020 or 2021? if it's considered for 2021, does that mean I cannot do a backdoor Roth IRA coversion for 2021 any more?

3 Replies
AnnetteB6
Expert Alumni

2021 backdoor Roth IRA conversion for 2020 tax year

The answer to your question is neither.  A Traditional IRA conversion to a Roth IRA is not considered to be a contribution to the Roth IRA. 

 

Since your non-deductible Traditional IRA contribution was for 2020, you will enter that contribution as part of your 2020 tax return and show that it is non-deductible. 

 

Then, in early 2022 you will receive a Form 1099-R for 2021 that will show the distribution from the Traditional IRA.  This Form 1099-R will be included as part of your 2021 tax return and you will indicate that the distribution was converted to a Roth IRA.

 

 

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afrirado
Level 2

2021 backdoor Roth IRA conversion for 2020 tax year

Then can I do another $6000 backdoor Roth IRA conversion after April 15, 2021? 

ThomasM125
Expert Alumni

2021 backdoor Roth IRA conversion for 2020 tax year

Yes, you can do another backdoor IRA conversion for 2021. You don't have to wait until after April 15 though, just tell your broker it is for 2021 when you do it.

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